Irish dairy processors to enter 'managed transition' amid drop in milk production

The analysis indicated these structural pressures will accelerate consolidation across European dairy processing

Eamonn McEnteggart, ICOS dairy committee chairman, said: 'In a European context where milk output may decline, Ireland’s grass-based, export-focused model remains well positioned, provided policy stability, innovation and investment continue.' Picture: Alf Harvey

EU milk production is expected to decline by around 5% between 2025 and 2030, prompting Irish processors to enter what they are describing as a "period of managed transition".

Senior Rabobank analysts told the ICOS Dairy Committee the contraction reflects tightening environmental and climate regulations, land use constraints, rising input costs and an ageing farmer population.